The mechanism that is most likely to motivate management to act in the best interests of shareholders is: Take actions that reduce the possibility of a hostile takeover Elect a board of directors that allows managers greater freedom of action. Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries. Decrease the use of restrictive covenants in bond agreements. All of the following statements are correct EXCEPT Both long-term debt and common stocks are examples of capital market instruments. If you sold 100 shares of Microsoft through your broker to an investor, this would be a secondary market transaction. The NYSE does have a physical location trading floor. Your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift is an example of a primary market transaction. Last year, Sharpe Radios had net operating profit after-taxes (NOPAT) of \$7.8 million. Its EBIT was \$10.4 million and net income was $3.5 million. During the year, Sharpe Radios made $5.0 million in net investment in operating capital, and its tax rate was 25%. What is Sharpe Radios' interest expense? (Hint: work the income statement from the bottom up) $6.67 million $4.67 million \$ 4.33 million \$5.73 million Medical Supply System's 2019 balance sheet showed total common equity (book value) of $2,050,000. The company had 100,000 shares of stock outstanding which sold at a price of $65 per share. By how much did the firm's market value and book value differ on a per share basis? $44.50 $38.25 $39.50 $37.50